Forgot to include W2 -- To Amend Now or Wait For Response/Rejection?

[123fourfivesix]

Hello!

So I forgot to account for a W2 (which was accounting for ~25% total income) on my taxes. It's been over 4 months since I filed. Should I still wait for a response from the IRS or should I just amend now? 

Just getting a little worried!

thanks

[rjs]

You should wait to amend until your original tax return has been processed. If you are getting a refund, wait until you get the refund. If you had a payment due, you should file your amended return now. Of course, if you get a notice from the IRS about the missing W-2, follow the instructions in the notice.

If you have further questions, please say whether you e-filed your original tax return or filed it by mail.

[SundayInSalem · Accepted solution]

Don't wait for the IRS, especially if you filed a return without including 25% of your income. However, as tax champ @rjs says, do wait until the IRS has processed your return.

The IRS adds penalty and interest for every month of unpaid tax. If you wait for an IRS adjustment, your penalty and interest will be higher than if you amend and pay your unpaid tax now.

To amend your return see How do I amend my 2021 return?

You should also contact IRS about penalty relief since it sounds like you made an honest mistake. For more info see Penalty Relief due to First Time Abate or Other Administrative Waiver.

[Mike9241]

taking this w-2 into account, do you owe or are you still due a refund? if still due a refund, I would wait. this should be something the IRS catches and it will adjust your return automatically. it's just that this may require some manual handling so it could be 6 to 9 months or longer before you hear from the IRS.  if you owe I would probably file an amended return and include payment. then you can wait for the bill for penalties and interest. others may disagree about filing an amended return if you owe. you could just make a payment of what you owe (i would suggest using direct pay) the reason to use is "balance due".  don't forget about the state if you have a state income tax. 

[123fourfivesix]

Thanks for your prompt and helpful replies!

@rjs : I filed by mail, and after checking the website, it seems delays in processing paper returns are expected for the time being. With that said, I don't have any payments due (just refund expected).

@SundayInSalem : Got it. I'll probably wait for now given that I don't owe any payments. I might also just try to visit my local IRS office and see if I can get a confirmation. This was my first time filing taxes independently, so if I end up having to pay a penalty, I'll try to get some relief as you mentioned. Yes, my mistake was certainly not intentional!

@Mike9241 : Sounds good!

thanks again for the help 🙂